High yield has been a steady performer recently, and contributed to excellent returns in many portfolios last year. What allocation do your funds have in high yield, and when—if not already—is the time to begin taking a defensive position on the sector?
The Loomis Sayles Bond Fund currently has approximately 32.5% of the portfolio in securities rated below investment grade. This is slightly below the maximum allowed and 2% below where it was earlier in the year. Within this allocation, we